Ishita KishoreAIR 1 · 197 wordsTheir whole copy
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(FC) Finance commission constituted under Art 280 of the Indian constitution envisages federal balance in financial matters
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(FC) Finance commission constituted under Art 280 of the Indian constitution envisages federal balance in financial matters
Crucial role in fiscal federalism
i- Devolution b/w Centre and State Eg Reduced from 42% to 41% in 15th FC in light of J&K
ii- Special Category States which receive support Eg debt relief
iii- Equitable distribution based on area, population, forest cover
iv- Cooperative federalism along with competition as also Eg Devolution based on tax efforts
v- Recommendations for third tier of government ensuring their fiscal health
15th Finance Commission under N K Singh has given → Intermediary report (2020-21) → Five year report (2021-26)
i- This has allowed 'agile' approach of Economic Survey in light of various crises
ii- Population weightage gradual shift from 1971 to 2011 census ensures → Rewarding South India's efforts → Accomodating North India's populous aspiration
iii- shift in 'forest cover' to 'forest & ecology' reflecting holistic approach Eg Uttarakhand encouraged to roll out 'Gross Environmental Product'
iv- ease of Doing Business fostered with weightage for tax effort
v- Area of states duly considered Eg change in status of J&K reduced devolution size.
FC is the bulwark for Niti Aayog's 'Healthy States Progressive India'
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iii- shift in 'forest cover' to 'forest & ecology' reflecting holistic approach Eg Uttarakhand encouraged to roll out 'Gross Environmental Product'
iv- ease of Doing Business fostered with weightage for tax effort
v- Area of states duly considered Eg change in status of J&K reduced devolution size. FC is the bulwark for Niti Aayog's 'Healthy States Progressive India'